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Principles of Monetary & Financial Sustainability and Wellbeing in a Post-COVID-19 World: The Crisis and Its Management

Author

Listed:
  • Jesús Huerta de Soto

    (Department of Applied Economics I, History and Economic Institutions and Moral Philosophy, Social and Legal Sciences Faculty, Rey Juan Carlos University, 28033 Madrid, Spain)

  • Antonio Sánchez-Bayón

    (Department of Business Economics (ADO), Applied Economics II, and Fundamentals of Economic Analysis, Legal and Social Sciences School, Rey Juan Carlos University, 28033 Madrid, Spain)

  • Philipp Bagus

    (Department of Applied Economics I, History and Economic Institutions and Moral Philosophy, Social and Legal Sciences Faculty, Rey Juan Carlos University, 28033 Madrid, Spain)

Abstract

This paper analyses the COVID-19 crisis and its management from the perspective of Austrian Economics. The attention focuses on the State’s coercive intervention according to the principles of political economy, capital theory and Austrian business economic cycles. The paper examines the specific case of massive intervention by governments and, especially, central banks in monetary and financial markets to deal with the pandemic trying to mitigate its negative effects. The paper offers a critical analysis of government tax policies and the increase in public spending, considered as the panacea and universal remedy for the social troubles. This review concludes with a proposal to change the mainstream paradigm, thereby proposing a more sustainable and wellbeing economics.

Suggested Citation

  • Jesús Huerta de Soto & Antonio Sánchez-Bayón & Philipp Bagus, 2021. "Principles of Monetary & Financial Sustainability and Wellbeing in a Post-COVID-19 World: The Crisis and Its Management," Sustainability, MDPI, vol. 13(9), pages 1-11, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:4655-:d:541056
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    References listed on IDEAS

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    1. Philipp Bagus & David Howden, 2012. "Monetary equilibrium and price stickiness: A rejoinder," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(3), pages 271-277, September.
    2. Philipp Bagus & David Howden, 2011. "Monetary equilibrium and price stickiness: Causes, consequences and remedies," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(4), pages 383-402, December.
    3. Bagus, Philipp & Gabriel, Amadeus & Howden, David, 2014. "Causes and Consequences of Inflation," MPRA Paper 79608, University Library of Munich, Germany.
    4. Philipp Bagus & David Howden & Walter Block, 2013. "Deposits, Loans, and Banking: Clarifying the Debate," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(3), pages 627-644, July.
    5. Philipp Bagus, 2011. "Morgenstern's Forgotten Contribution: A Stab to the Heart of Modern Economics," American Journal of Economics and Sociology, Wiley Blackwell, vol. 70(2), pages 540-562, April.
    6. Bagus, Philipp & Howden, David, 2010. "Fractional Reserve Banking: Some Quibbles," MPRA Paper 79590, University Library of Munich, Germany.
    7. Philipp Bagus & David Howden & Amadeus Gabriel, 2015. "Oil and Water Do Not Mix, or: Aliud Est Credere, Aliud Deponere," Journal of Business Ethics, Springer, vol. 128(1), pages 197-206, April.
    8. Philipp Bagus & David Howden, 2016. "The economic and legal significance of “full” deposit availability," European Journal of Law and Economics, Springer, vol. 41(1), pages 243-254, February.
    9. Philipp Bagus, 2015. "In Defense of Deflation," Financial and Monetary Policy Studies, Springer, edition 127, number 978-3-319-13428-4, December.
    10. Philipp Bagus & Markus H. Schiml, 2009. "New Modes Of Monetary Policy: Qualitative Easing By The Fed," Economic Affairs, Wiley Blackwell, vol. 29(2), pages 46-49, June.
    11. Philipp Bagus & David Howden & Amadeus Gabriel, 2017. "The Hubris of Hybrids," Journal of Business Ethics, Springer, vol. 145(2), pages 373-382, October.
    12. Philipp Bagus & David Howden & Jesús Huerta de Soto Ballester, 2018. "Entrepreneurial Error Does Not Equal Market Failure," Journal of Business Ethics, Springer, vol. 149(2), pages 433-441, May.
    13. Philipp Bagus & José Antonio Peña-Ramos & Antonio Sánchez-Bayón, 2021. "COVID-19 and the Political Economy of Mass Hysteria," IJERPH, MDPI, vol. 18(4), pages 1-15, February.
    14. Nicolas Véron, 2015. "Europe's Banking Union," World Scientific Book Chapters, in: Douglas D Evanoff & Andrew G Haldane & George G Kaufman (ed.), The New International Financial System Analyzing the Cumulative Impact of Regulatory Reform, chapter 6, pages 131-162, World Scientific Publishing Co. Pte. Ltd..
    15. Philipp Bagus & David Howden, 2012. "The Continuing Continuum Problem of Deposits and Loans," Journal of Business Ethics, Springer, vol. 106(3), pages 295-300, March.
    16. Philipp Bagus & Juan Julián & Miguel Neira, 2014. "A free market bailout alternative?," European Journal of Law and Economics, Springer, vol. 37(3), pages 405-419, June.
    17. Philipp Bagus & Amadeus Gabriel & David Howden, 2016. "Reassessing the Ethicality of Some Common Financial Practices," Journal of Business Ethics, Springer, vol. 136(3), pages 471-480, July.
    18. Philipp Bagus & Markus H. Schiml, 2010. "A Cardiograph of the Dollar's Quality: Qualitative Easing and the Federal Reserve Balance Sheet During the Subprime Crisis," Prague Economic Papers, Prague University of Economics and Business, vol. 2010(3), pages 195-217.
    19. Philipp Bagus & David Howden, 2009. "The Legitimacy of Loan Maturity Mismatching: A Risky, but not Fraudulent, Undertaking," Journal of Business Ethics, Springer, vol. 90(3), pages 399-406, December.
    20. Patrick Newman, 2020. "Modern Monetary Theory: An Austrian Interpretation of Recrudescent Keynesianism," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 48(1), pages 23-31, March.
    21. Bagus, Philipp & Howden, David, 2016. "Central Bank Balance Sheet Analysis," MPRA Paper 79801, University Library of Munich, Germany.
    22. Philipp Bagus, 2008. "Monetary policy as bad medicine: The volatile relationship between business cycles and asset prices," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 21(4), pages 283-300, December.
    23. Javier G. Milei & Diego Pablo Giacomini, 2017. "Ensayos Monetarios para Economías Abiertas: El Caso Argentino," Revista Actualidad Económica, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 27(91), pages 5-24, Ene-Abr.
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    Cited by:

    1. Barbara Cieślińska & Anna Janiszewska, 2022. "Demographic and Social Dimension of the COVID-19 Pandemic in Polish Cities: Excess Deaths and Residents’ Fears," Sustainability, MDPI, vol. 14(13), pages 1-24, July.
    2. Victor I. Espinosa & José Antonio Peña-Ramos & Fátima Recuero-López, 2021. "The Political Economy of Rent-Seeking: Evidence from Spain’s Support Policies for Renewable Energy," Energies, MDPI, vol. 14(14), pages 1-16, July.
    3. Radu Șimandan & Cristian Valeriu Păun & Bogdan Glăvan, 2023. "Post-Pandemic Greenness? How Central Banks Use Narratives to Become Green," Sustainability, MDPI, vol. 15(2), pages 1-28, January.
    4. José Antonio Peña-Ramos & María del Pino-García & Antonio Sánchez-Bayón, 2021. "The Spanish Energy Transition into the EU Green Deal: Alignments and Paradoxes," Energies, MDPI, vol. 14(9), pages 1-18, April.
    5. Estrella Trincado & Antonio Sánchez-Bayón & José María Vindel, 2021. "The European Union Green Deal: Clean Energy Wellbeing Opportunities and the Risk of the Jevons Paradox," Energies, MDPI, vol. 14(14), pages 1-23, July.
    6. Maribel Paredes-Torres & Ana del Rocío Cando-Zumba & José Varela-Aldás, 2022. "Income Tax for Microenterprises in the COVID-19 Pandemic: A Case Study on Ecuador," Sustainability, MDPI, vol. 14(5), pages 1-20, February.
    7. Martín García Vaquero & Antonio Sánchez-Bayón & José Lominchar, 2021. "European Green Deal and Recovery Plan: Green Jobs, Skills and Wellbeing Economics in Spain," Energies, MDPI, vol. 14(14), pages 1-20, July.

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